While my blog post yesterday provided an overview of the American Rescue Plan of 2021 (ARPA), I thought it might be helpful to take a closer look and deeper dive into the employment-related provisions of the ARPA, which President Joe Biden signed into law last night before his televised address to the nation.
Along with providing financial relief to individuals, schools, businesses, and state and local governments, the law contains the following measures of which will undoubtedly be of special interest to employers and their employees:
- A subsidy for COBRA premiums, funded through employer tax credits
- Extension of employer tax credits for FFCRA employee leave voluntarily provided through Sept. 30, 2021
- Expansion of employee earnings eligible for the FFCRA tax credit
- Inclusion of testing and immunization as reasons for FFCRA leave
- Extension of $300 increase in weekly unemployment benefits
- Extension of weekly unemployment benefits for workers who otherwise wouldn’t qualify for these benefits
- Expansion of subsidy for ACA premiums
- Increase in DCAP contribution limits
- Extension and expansion of the employee retention tax credit
Let’s discuss each of these in further detail;